Young insurance agents see a bright future for themselves in the industry — here’s why.
Currently, the average age of a practicing insurance agent is 59. By 2018, it is estimated that over 25% of active agents will retire, paving the way for agents under the age of 40 to take over the industry.
The passing of the proverbial torch may be a time of upset in other industries, but younger agents are aware of these trends and are nevertheless reporting an overwhelmingly high level of job satisfaction: according to Insurance Journal’s 2016 Young Agents Survey, over 60% of younger agents feel optimistic about their careers. In a time when many Millennials are struggling to establish their career paths, young insurance agents are thriving.
Job Security in an Uncertain World
The insurance industry is one sector that shows near-constant growth and improvement — a fact that many Millennials and Gen Xers are exploiting. Because insurance policies (for home, health, or auto) are a necessity, they’re always in demand. That means that there will be a constant need for new agents to help individuals understand their coverage needs.
One young agent noted that “Working in an industry and company that will still be around in 20 years from now is important to me. The youth needs to learn to appreciate why working for a growing, stable company can benefit them. There is a lot of growth opportunity in this industry.”
Rather than worrying about mass layoffs or losing clients, young insurance agents are able to focus on building a client base, improving their business, and expanding their level of expertise.
Younger Agents Want to Stay in the Industry
For many Millennials entering the workforce, finding a position that provides an adequate salary is particularly difficult. However, 24.5% of young insurance agents make between $31,000 and $50,000, while an additional 27.7% report an annual salary of between $51,000 and $75,000. The harder they work, the more money they make, giving younger agents incentives to learn as much as they can and stay in the field rather than looking for a career change early on. Because they’re satisfied with the work and its opportunities for professional growth, they stick around.
The insurance industry also offers a degree of flexibility which is uncommon in the American workforce — unlike many corporate career paths, insurance agents are free to work directly under the umbrella of a major carrier, or to launch their own independent agencies.
Better Technology, Better Opportunities
Many experienced agents started their business the hard way, cold calling prospects day in and day out. By contrast, today’s technology makes finding qualified leads far easier, giving younger agents a leg up on building their business quickly.
Because the proportion of older insurance agents in the workforce is diminishing, younger agents are poised to establish themselves as industry experts in a matter of years. Considering that the insurance industry promises stable growth and technological adaptation, it’s no wonder that younger agents are more optimistic about their jobs than ever before.